Robinhood results to shed light on volatile quarter
The stock plunged nearly 50% during the market rout before bouncing over 40% after Trump’s tariff pause.
Stock and crypto brokerage app Robinhood Markets is on the docket for earnings Wednesday after the close. (Sherwood Media is an editorially independent subsidiary of Robinhood Markets Inc.)
The first quarter was a volatile one for the company. In February, it reported strong Q4 results that sent shares to a post-IPO high of more than $65 on Valentine’s Day. A few days later, the tariff-related sell-off for stocks and crypto began, with no reprieve for HOOD.
Between February 14 and April 8 — the day before President Trump announced a “pause” on tariffs — Robinhood plunged nearly 50%. Then came the April 9 tariff pause, which catapulted the stock back up, along with the broader markets.
The hive mind of sell-side analysts expects the company to report $0.33 a share on revenues of $920 million. Those expectations have seen a major reduction, more than 20% off the highs hit in the immediate aftermath of February earnings. Over the same period, profit estimates for the S&P 500 as a whole came under the knife by less than 2%.
Of course, the reaction of the stock Wednesday could be cued by the color of trading activity at Robinhood so far this month, per JPMorgan analysts.
“We expect positive commentary around the robust activity in early April as retail was often cited as net buyers in the first week post-U.S. tariff announcements,” they wrote in a note Tuesday.
Disappointing such expectations can result in jarring moves for shares.
Interactive Brokers dove 9% on April 16, after it reported results, and executives told analysts that they’d seen a decline in margin loans in early April.
